"For a stationary autoregressive process, shocks will",Eventually die away,Persist indefinitely,Grow exponentially,Never occur,A
"Consider the following AR(1) model with the disturbances having zero mean and unit variance

yt = 0.2 + 0.4 yt-1 + ut

The (unconditional) mean of y will be given by",0.2,0.4,0.5,0.33,D
"Suppose that a test statistic has associated with it a p-value of 0.08. Which one of the following statements is true?

(i) If the size of the test were exactly 8%, we would be indifferent between rejecting and not rejecting the null hypothesis

(ii) The null would be rejected if a 10% size of test were used

(iii) The null would not be rejected if a 1% size of test were used

(iv) The null would be rejected if a 5% size of test were used.",(ii) and (iv) only,(i) and (iii) only,"(i), (ii), and (iii) only","(i), (ii), (iii), and (iv)",C
What would be then consequences for the OLS estimator if heteroscedasticity is present in a regression model but ignored?,It will be biased,It will be inconsistent,It will be inefficient,"All of (a), (b) and (c) will be true.",C
"Suppose now that a researcher wishes to use information criteria to determine the optimal lag length for a VAR. 500 observations are available for the bi-variate VAR, and the values of the determinant of the variance-covariance matrix of residuals are 0.0336, 0.0169, 0.0084, and 0.0062 for 1, 2, 3, and 4 lags respectively. What is the optimal model order according to Akaike's information criterion?",1 lag,2 lags,3 lags,4 lags,C
